India's Data Centre Sector Set to Expand 21% to 3,400 MW by 2030
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Synopsis
India is on track to become a global data centre hub, expecting a 21% growth to 3,400 MW IT capacity by 2030, with significant demand from cloud computing, big data, and AI.
Key Takeaways
- Projected demand of over 450 MW IT capacity in 2025.
- Data centre market expected to grow at 21% CAGR until 2030.
- Major drivers include cloud computing, big data, and AI.
- Mumbai leads in data centre absorption.
- Significant land acquisitions in major cities.
New Delhi, Jan 24 (NationPress) India is swiftly establishing itself as a global data centre hub, with a projected demand exceeding 450 megawatt (MW) IT capacity across prominent cities by 2025. Concurrently, the anticipated supply addition is around 600 MW IT, as per a report released on Friday.
Furthermore, the data centre market in India is expected to witness a compound annual growth rate (CAGR) of 21 percent from 2024 to 2030, aiming for a total of 3,400 MW IT capacity by the end of this period, according to Savills India, a prominent global real estate advisory firm.
In 2024, the country experienced an absorption of 407 MW IT capacity along with an addition of 191 MW IT capacity in key urban areas.
The demand for data centres continues to escalate, influenced by the growing adoption of cloud computing, the expansion of big data, the Internet of Things (IoT), Artificial Intelligence (AI), and the rapid development of e-commerce and digital transformation initiatives.
This surge in demand is primarily driven by hyperscalers, the BFSI sector (banking, financial services, and insurance), as well as IT and ITeS companies, all of which depend heavily on data centre operators for colocation and ancillary services.
Mumbai topped the absorption market, accounting for 53 percent of the total, followed by Hyderabad at 14 percent, and both Chennai and Pune at 10 percent each.
The report highlights a notable increase in data centre land transactions in the country, spurred by rising demand and expansions by data centre operators and hyperscalers acquiring land in key urban areas.
In 2024, more than 200 acres of land were procured in Mumbai, Hyderabad, Pune, Chennai, and Bengaluru.
“The growing penetration of 5G technology and the increasing utilization of mobile applications are driving the demand for edge data centres in Tier-II and Tier-III cities such as Bhubaneswar, Patna, Lucknow, Jaipur, Kochi, Vizag, Coimbatore, Madurai, Raipur, and HubliSrihari Srinivasan, Director and Lead Data Centre Services at Savills India.
“At the same time, major tier-I cities continue to flourish. By 2030, we anticipate the data centre stock to reach 3,400 MW IT across significant urban centres,” Srinivasan added.
According to the report, supply and absorption primarily concentrated in Mumbai, Chennai, Hyderabad, and Pune.
